Call us: (800) 490-1476 | Email us: Hello@ChopDawg.com

Schedule Your Free 45 Minute Consultation
Free 45 Minute Consultation

Startups: Seven Reasons to Lease

Revenue & Finances

Joshua Davidson wrote this article

0 Comments

You are reading a guest blog post by Mark Johnson.

Your plans are agreed, perhaps your new build is finished, maybe refurbishment or development work is ready to start and chances are, you’ll have your eye on some great new equipment. You just want to keep your cash for the other thing…

There are so many taboos about reaching out for financial assistance in the early stages of business, but unlike many misleading promotions, leasing isn’t a ploy to try and catch you out.

Quite simply, it is a way of spreading the cost of equipment over a set period of time, so there’s no large outlay in the crucial early stages of trading.

But how does this help grow your business?

1) Preserve cash flow
Cash flow is your business’ most precious commodity, and all the more important in the early stages of your start-up. A lease spreads the cost of the equipment over a set period of time, so there’s no need to immediately part with a lump sum of capital expenditure. This way, you can put your money into more profitable avenues, like employing new staff, investing in marketing, or securing new contracts for example.

2) Get the best of the best
There’s no need to settle for anything less than the best. When you’re restricted by a budget, you’ll often end up with inferior equipment that simply won’t be the best option for you or your business. Whoever said, “you get out what you put in” wasn’t wrong. The better kit will produce a better end product, and is likely to last longer anyway, so it’s a win-win. But of course, you might want to change your kit before it reaches the end of its life, which brings us to point number three…

3) Upgrades
Line up the award for stating the obvious- technology is constantly evolving. Most plans provide the flexibility to upgrade your equipment or extend its current usage; vital to stay at the forefront of your competitive market.

4) The T-word
The dreaded tax. But when you take advantage of leasing, rentals are fully tax-deductible. What’s not to love?

5) This one’s for you and your business
Leasing doesn’t affect any existing credit lines, so you can guarantee your bank overdrafts etc. will remain completely intact.

6) Quick and easy. Seriously!
Traditional lenders, such as banks, can take weeks to process a request. With leasing, decisions can be made within an hour or two. Of course, there’s paperwork, but the only information required for a start-up is;

• The names and addresses of the individual(s) involved
• 3 months of personal bank statements
• Proof of investment/start-up costs

A business plan isn’t essential, but if you haven’t already made one, you might want to consider it! It can help you focus your efforts, set specific objectives and ultimately aid growth.

7) Plan ahead
Agreements can vary from one to five years and repayments are fixed to suit you so you can plan your budgets. And if you’ve got one on board, that’s a big thumb up from your financial director!

Funding options stretch way beyond the time-consuming process of approaching a bank for a loan. Leasing is a thoroughly useful tool for start-ups, helping lift the business off the ground and operate immediately with the necessary equipment. What’s more, you can enjoy peace of mind during the exciting early stages of trading, knowing your equipment is doing the work as you pay for it- just like your staff!

About the writer of this guest blog post: Mark Johnson is the Managing Director of Johnson Reed Business Finance, the UK’s leading equipment leasing and finance facilitator. With 20 years’ experience in the equipment leasing industry, Mark has assisted with finance across many different business sectors, with around one in three deals being new starts. Johnson Reed’s trademark ‘Quirky Kit Finance’ drives their funding mission for the critical equipment businesses need, that banks often neglect. You can find Mark on Twitter: @JohnsonReed or LinkedIn.

Are you interested in writing a guest blog post for our readers here at the Chop Dawg blog? Email us at Hello@ChopDawg.com!

What Does It Take To Build A Next-Generation App?

Each month, you’ll receive insight from our team, like what’s new in tech, app development and all things running a startup.

Always free. Unsubscribe anytime.

Are you looking for a partner to help bring your vision to life?

Look no further. Schedule your free consultation to see how our passionate team can help turn your app idea into a real product.

Schedule your free consultation

Join in on the discussion! Leave a comment and get involved.

  • Recently Released Content

    Leadership & Inspiration

    5 Ways To Optimize Your Networking Habits

    Technology

    Google Wants To Start Charging Long-term Small Business Users

    Social Media

    How Elon Musk Wants To Reach 1 Billion Twitter Users

    Web & Mobile

    Make Your App Stand Out